Fannie Mae and Freddie Mac Could Be Combined
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According to a report from FOX Business Network's Charles Gasparino, the U.S. Treasury has begun holding significant meetings with executives on Wall Street to work on a solution to Fannie Mae and Freddie Mac.
"What we have heard is over the last couple of weeks the Treasury began holding significant meetings with Wall Street executives to come up with a solution to Fannie and Freddie," Gasparino said. "Both of the failed mortgage agencies are in conservativeship. What they are trying to do is find a way to revive them in a way that is least hurtful to taxpayers."
The report citing Wall Street sources said that the two mortgage firms will be combined into one agency.
"They have toxic assets on their books. That’s what caused their demise. The Wall Street guys believe if you combine those agencies it’s easy to deal with those toxic assets. Wall Street guys think that’s what’s going to happen. Both of those agencies are going to go and Treasury is going to move them into one agency."
Gasparino said that regulators purposely did not include Fannie and Freddie in the recent Dodd-Frank financial regulatory reform package due to a number of issues.
"A lot of republicans want to kill those agencies. Take them over, put them out of business. Democrats obviously don’t want to do that. Housing policy is a big part of their plank."
"What we have heard is over the last couple of weeks the Treasury began holding significant meetings with Wall Street executives to come up with a solution to Fannie and Freddie," Gasparino said. "Both of the failed mortgage agencies are in conservativeship. What they are trying to do is find a way to revive them in a way that is least hurtful to taxpayers."
The report citing Wall Street sources said that the two mortgage firms will be combined into one agency.
"They have toxic assets on their books. That’s what caused their demise. The Wall Street guys believe if you combine those agencies it’s easy to deal with those toxic assets. Wall Street guys think that’s what’s going to happen. Both of those agencies are going to go and Treasury is going to move them into one agency."
Gasparino said that regulators purposely did not include Fannie and Freddie in the recent Dodd-Frank financial regulatory reform package due to a number of issues.
"A lot of republicans want to kill those agencies. Take them over, put them out of business. Democrats obviously don’t want to do that. Housing policy is a big part of their plank."
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